Damage & Liability Policy

• Lenders must provide accurate descriptions of each item listed on the platform.
• Clear, recent photographs must be uploaded showing the full condition of the item, including any existing wear, marks, or imperfections.
• Existing flaws must be clearly disclosed in the listing description.
• Lenders are responsible for ensuring listing photographs and condition descriptions remain accurate and up to date. Closet Club may request updated photos where listing condition is unclear or where disputes arise.
• Closet Club does not guarantee fit or suitability of an item for any individual. Renters are responsible for reviewing sizing information, brand sizing differences, and measurements provided in the listing prior to booking.
• Fit preference or styling expectations do not constitute an item being “not as described.”
• Closet Club may assess item value based on fair market replacement value at the time of a claim, taking into account age, condition, and comparable market pricing rather than the original retail purchase price where significantly different.
• Lenders acknowledge that the security deposit amount selected for a Listing determines the maximum amount that may be recovered directly through Closet Club's payment and dispute resolution processes. Lenders are responsible for selecting a deposit amount that reflects the level of protection they consider appropriate for their item. Lenders acknowledge that selecting a lower security deposit may result in unrecovered loss in the event of significant damage.

• Closet Club reserves the right to request supporting evidence of value in the event of a damage claim, including original purchase receipts, retail listings, brand verification, or comparable resale value.
• If Closet Club determines that the declared item value is materially inflated, unsupported, or inconsistent with market value, Closet Club may reduce the compensation amount, limit recovery to a reasonable assessed value, or deny the claim.
• Repeated misrepresentation of item value may result in suspension or removal from the platform.
• Compensation will take into account depreciation based on age, usage, and condition. Users are not entitled to replacement value where an item has materially depreciated.

• Security deposit authorisation typically occurs approximately 24 hours prior to the Rental Period to align with payment provider authorisation timeframes.
• Security deposit authorisations are separate from any rental fee or booking payment authorisation.
• The security deposit is not charged unless a valid damage, loss, late return, or related claim is upheld in accordance with this Policy.
• If no dispute is raised within 24 hours of the agreed return time, the security deposit authorisation will be released approximately 48 hours after the confirmed return time, subject to payment provider processing timeframes.
• Security deposit authorisations are typically released approximately 48 hours after the confirmed return time where no dispute has been raised, while payout to the Lender may occur separately in accordance with the Platform’s payout schedule.
• The security deposit represents the maximum amount that may be recovered directly through Closet Club's payment and dispute resolution processes. Users remain responsible for the actual loss or damage they cause.
• Compensation recovered directly through Closet Club's payment systems will be limited to the applicable security deposit amount. Closet Club does not provide insurance coverage beyond this amount.
• Where no dispute is raised within 24 hours of the agreed return time, payout to the Lender may be released approximately 48 hours after the confirmed return time.
• If a dispute is raised within the 24-hour reporting window, payout may be delayed until the dispute is resolved.
• Where required to preserve funds due to payment provider time limits, Closet Club may temporarily capture part or all of the applicable security deposit prior to final dispute resolution.
• This may include full deposit capture as a precautionary measure pending assessment of the appropriate amount, in accordance with the Terms & Conditions.
• Where a security deposit is captured prior to final dispute resolution, Closet Club will hold and allocate those funds in accordance with the final outcome of the dispute.
• Users acknowledge that dispute investigations are expected to be conducted promptly and within the timeframes required to comply with payment provider authorisation limits. Where this is not possible, the temporary capture process described in the Terms & Conditions will apply.

Damage includes:

• Stains;
• Tears;
• Rips;
• Missing embellishments;
• Structural damage (including zippers or straps);
• Unauthorised alterations;
• Irreversible odours.

Damage does NOT include:

• Minor creasing from normal wear;
• Standard dry-cleaning requirements;
• Removable lint;
• Dissatisfaction with fit.

• Damage claims must relate to new damage occurring during the Rental Period and must exceed normal wear consistent with expected use.
• Pre-existing flaws that were clearly disclosed in the Listing and visible in listing photographs do not constitute damage or grounds for refund.
• Routine cleaning, including dry cleaning, is considered normal wear unless excessive or unreasonable soiling occurs. Costs associated with standard cleaning are not recoverable unless the item is returned in a condition requiring additional or specialised treatment beyond normal use.

• Differences in fit, personal style preference, suitability, or expectations of appearance do not constitute an item being “not as described” where the Listing accurately represents the item’s size, condition, and appearance.
• Closet Club does not provide refunds based solely on personal preference, fit dissatisfaction, or change of mind.

• Responsibility for the condition of an item transfers to the Renter only upon confirmed collection or physical handover of the item and remains with the Renter until confirmed return as defined in this Policy.
• Items must be returned at the agreed time.
• Late returns without prior approval may result in additional charges, including late fees, which the User agrees to pay.
• Repeated late returns may result in account suspension.
• A return is considered completed when the item has been physically handed back to the Lender or placed at an agreed return location and marked as returned within the Platform. The dispute reporting window begins at the earlier of the scheduled return time recorded in the booking or the time the item is marked as returned within the Platform. Closet Club is not responsible for any damage or loss occurring after confirmed return.
• If an item is not marked as returned within the Platform at the scheduled return time, the Platform may automatically record the scheduled return time as the confirmed return time for the purposes of calculating the dispute reporting window.
• Where an item is returned earlier than the scheduled return time and the return is recorded within the Platform, the dispute reporting window will begin from the time the return is recorded.
• Where the item has not been returned at the scheduled return time, the Lender must raise any non-return dispute within 24 hours of that scheduled return time. Failure to submit a dispute within this timeframe will be treated as confirmation that the item has been returned.
• Any agreed changes to pickup or return times must be updated within the Platform prior to the original scheduled time. Private agreements made outside the Platform that are not recorded within the booking will not modify the scheduled return time for the purposes of dispute reporting, late fees, or payout timing.
• Where both Users mutually agree to a later return time that remains within the original approved booking period, no additional hire fee will apply provided the updated return time is recorded within the Platform. In such circumstances, the dispute reporting window will begin from the confirmed return time recorded within the Platform.
• For clarity, marking an item as returned within the Platform confirms the time of physical return but does not extend the dispute reporting window beyond the scheduled return time where the item is returned later than agreed.
• Closet Club may determine the return status and effective return time based on available system data, including scheduled return times, platform records, and communication history, where a User fails to mark an item as returned or where User actions are inconsistent or delayed.

Where a booking has been modified through an item swap:

• All responsibilities relating to item care, return condition, and liability apply to the final confirmed item in the booking
• The dispute reporting window will apply based on the scheduled return time of the booking as recorded within the Platform
• Any damage or condition claims must relate to the item ultimately provided and used during the Rental Period
• Where a swap occurs at or after item collection, the Renter acknowledges that the replacement item has been accepted in its current condition at the time of exchange unless reported in accordance with the dispute reporting requirements.

• If an item is not returned, Closet Club may capture the full security deposit where permitted.
• Where the value of a loss exceeds the security deposit amount, Closet Club may assist the parties in attempting to resolve the remaining claim.

Where the assessed value of damage, loss, theft, non-return, repair costs, replacement costs, cleaning costs, or other recoverable losses exceeds the applicable security deposit amount, Closet Club may, at its sole discretion:

• request additional evidence from either User;
• obtain repair quotations, replacement estimates, invoices, or valuation evidence;
• facilitate communication between the Users;
• assist the Users in attempting to negotiate a resolution;
• provide relevant booking records and dispute evidence where reasonably necessary.

• Users acknowledge that Closet Club acts solely as a facilitator and mediator and does not act as an insurer, debt collector, legal representative, or guarantor of recovery.
• Users remain legally responsible for any damage, loss, theft, or non-return caused during a booking.
• Nothing in this Policy prevents a User from seeking recovery of losses exceeding the security deposit amount through lawful means, including where Closet Club has facilitated communication or attempted resolution between the parties.
• Users agree to reasonably cooperate with any investigation, evidence requests, or resolution process conducted by Closet Club in relation to claims exceeding the security deposit amount.
• Where a User refuses to reasonably participate in a dispute investigation or resolution process, Closet Club may take account action including warnings, suspension, payout delays, or account termination in accordance with the Terms & Conditions.

• Renters must report items that are not as described, including undisclosed stains, damage, or condition issues, within 24 hours of receiving the item and before use where reasonably possible. Clear, time-stamped photographic evidence must be provided.
• Items must be inspected and any issues reported before use where reasonably possible. Continued use of an item after becoming aware of a condition issue constitutes acceptance of the item’s condition.
• Lenders must report new damage occurring during the Rental Period within 24 hours of the dispute reporting window commencing. Claims submitted outside of these timeframes may be denied.
• Continued use of the item after becoming aware of a condition issue may be considered acceptance of the item’s condition.
• Where an item has been used, worn, or altered after collection, the Renter may be held responsible for any damage unless clear evidence is provided that the damage existed prior to use.
• Closet Club may reject claims where evidence is unclear, insufficient, inconsistent, or not time-stamped within the required reporting window.
• For the purposes of all Closet Club policies, the dispute reporting timeframes set out in this section are the definitive and controlling timeframes.

• Closet Club operates as a peer-to-peer marketplace facilitator and does not own, inspect, or insure listed items.
• Closet Club makes dispute decisions based on available evidence.
• Closet Club retains sole discretion in assessing the sufficiency, credibility, and relevance of evidence submitted in connection with any dispute. Users acknowledge that failure to provide clear, time-stamped photographic or written evidence within the applicable reporting window may result in denial of the claim. Closet Club is not obligated to pursue additional investigation beyond the materials provided by Users.
• Where multiple or conflicting disputes arise from the same booking, Closet Club may assess all claims together and make a single determination based on the totality of available evidence.
• Closet Club is not liable for indirect, incidental, or consequential damages arising from use of the platform.
• For clarity, Closet Club does not provide insurance. Any amount recoverable directly through Closet Club's payment systems is limited to the applicable security deposit amount. Closet Club may, at its discretion, assist Users in attempting to resolve claims exceeding the security deposit amount.
• Closet Club’s dispute determinations are final for the purposes of platform operations, including payment handling, account actions, and deposit outcomes. This does not affect any rights either party may have under Australian Consumer Law or other applicable law.